Most banks exchange currency, but not all branches do it, and the rates and fees vary widely

You can exchange currency at many banks, but the process is less straightforward than walking in and handing over cash. Some banks do currency exchange at every branch. Others only do it at certain locations — often the largest downtown branch or a travel center. Some banks don't offer it at all, or only for customers with certain account types. Before you go, call the branch directly and ask whether they exchange the specific currency you need, because even banks that do exchange currency may not stock every one.

Banks are not the only place to exchange currency. Currency exchange shops, airports, and some credit unions also offer this service. The rate you get and the fees you pay depend heavily on where you go — banks typically charge more than specialized currency exchange shops, and airports charge the most. If you have time before your trip, a currency exchange shop in your city will usually give you better value than a bank.

Key Takeaways

  • Call your bank branch before going in, because currency exchange is not available at all locations and not all banks stock every currency.
  • Banks typically charge a fee for currency exchange and offer a less favorable exchange rate than you would get online or at a currency exchange shop.
  • Specialized currency exchange shops, which you can find in most cities, usually offer better rates and lower fees than banks.
  • Airport currency exchange is the most expensive option, so avoid exchanging money there unless you have no other choice.
  • If you have a checking or savings account with a bank, ask whether they offer better rates for account holders before you exchange elsewhere.

How banks charge for currency exchange

When you exchange currency at a bank, you pay in two ways: a markup on the exchange rate and sometimes a flat transaction fee. The markup is the difference between the rate the bank pays for foreign currency and the rate they charge you. The bank keeps this difference as profit. A transaction fee is a separate charge — often $5 to $15 — that some banks add on top of the markup.

The exchange rate itself changes constantly throughout the day based on global currency markets. The "mid-market rate" is what you see on financial websites and news sites — it is the true rate at that moment. Banks do not give you the mid-market rate. They mark it up by 1% to 5% or more, depending on the bank and the currency. This means if the mid-market rate is 1.10 for euros, your bank might give you 1.05 or lower. Over a large exchange, this difference adds up quickly.

Before you exchange, ask the bank for the specific rate they will give you and any fees they will charge. Do not assume all banks charge the same amount — rates and fees vary significantly from bank to bank and sometimes from branch to branch.

What you need to bring to exchange currency

You will need a valid photo ID, such as a driver's license or passport. If you are exchanging a large amount — generally $3,000 or more in a single transaction — the bank may ask for additional information or documentation. This is a federal requirement, not a bank choice, and banks must report large cash transactions to the government.

Bring the currency you want to exchange in cash or, in some cases, traveler's checks. Most banks will not exchange currency that is damaged, torn, or marked with writing. If you have bills in poor condition, the bank may refuse them or charge you extra to send them to a currency processing center.

If you are a customer of the bank, bring your account number or debit card. Some banks offer slightly better rates to their own customers, though the difference is usually small. Ask before you exchange whether you get any rate advantage as an account holder.

Alternatives that often cost less than banks

A currency exchange shop is a business that specializes in exchanging money. These shops exist in most cities and are often located in downtown areas, near airports, or in neighborhoods with large immigrant populations. They typically offer better rates than banks because they handle high volume and have lower overhead costs. The fee structure is usually simpler — often just a markup on the rate, with no additional transaction fee.

If you have time before your trip, you can also order currency online from services like XE or OANDA and have it delivered to your home or picked up at a local branch. This option often gives you the best rate, though there may be a small delivery fee. The advantage is that you can compare rates across multiple services before you commit.

Credit unions sometimes offer currency exchange to their members at rates better than banks. If you belong to a credit union, call and ask what they charge before you go to a bank.

When banks do not have the currency you need

If your bank does not stock the currency you need, they can usually order it for you. This takes several business days — typically 3 to 7 days, depending on the currency and the bank's processes. You will pay a fee for this service, usually $15 to $25, on top of the exchange rate markup. Some banks waive this fee for account holders or for large exchanges.

If you need currency quickly and your bank cannot provide it in time, a currency exchange shop is your best option. They stock a wider range of currencies than most banks and can often exchange money the same day you walk in.

For very rare currencies or large amounts, you may need to contact a currency broker or a bank's international services department. These options are more expensive but can handle requests that regular branches cannot.

How to get the best rate when you exchange currency

Start by comparing rates across at least three sources: your bank, a local currency exchange shop, and an online service. Write down the rate each one offers and the fees they charge, then calculate the total amount of foreign currency you would receive from each. The lowest total is your best deal, not necessarily the one with the lowest fee.

Exchange only the amount you actually need. Banks and exchange shops sometimes charge lower rates on larger amounts, but this only saves you money if you would have exchanged that amount anyway. Exchanging extra money "just in case" usually costs more than exchanging additional currency later if you need it.

Avoid exchanging currency at airports. Airport exchange services charge significantly more than banks or city-based currency shops. If you must exchange at an airport, do it only for a small amount to cover when ready expenses, then exchange the rest at a better rate once you reach your destination.

Currency exchange for online and wire transfers

If you are sending money to another country rather than exchanging physical cash, banks offer wire transfer services. The exchange rate for a wire transfer is usually different from the rate for cash exchange — sometimes better, sometimes worse — and wire transfers have their own fees. Banks typically charge $15 to $50 for an international wire transfer, plus a markup on the exchange rate.

For international transfers, compare your bank's rate and fees against services like Wise (formerly TransferWise), OFX, or Remitly. These services often offer better rates than banks for transfers, especially for larger amounts. They work differently from banks — you set up an account online, and the money is transferred electronically rather than through the banking system.

Frequently Asked Questions

Do I need to be a customer of the bank to exchange currency there?

Most banks exchange currency for non-customers, but some require you to have an account. Call ahead and ask. If you are a customer, you may get a slightly better rate, though the difference is usually small — often less than 1%.

How long does it take to exchange currency at a bank?

If the bank has the currency in stock, the exchange usually takes 10 to 30 minutes. If they need to order it, it takes 3 to 7 business days. Ask when you call whether they have the currency available that day.

Can I exchange currency after I return from my trip?

Yes, most banks and currency exchange shops will exchange foreign currency back to dollars. The rate will be different from the rate you got when you exchanged to foreign currency — you will receive less than you paid. This is normal and expected.

What is the difference between a bank and a currency exchange shop?

Currency exchange shops specialize in exchanging money and usually offer better rates and lower fees than banks. Banks offer exchange as one of many services. If you have time, a currency exchange shop will usually save you money.

Do credit cards give a better exchange rate than banks?

Credit cards typically offer better exchange rates than banks when you use them to make purchases abroad, because card companies buy currency in bulk. However, some cards charge a foreign transaction fee that offsets this advantage. Check your card's terms before your trip.